Healthways (HWAY) Stock Sinks on Lower Full Year Revenue Guidance

Healthways (HWAY) shares fall after the company lowers its full year 2015 revenue guidance.

NEW YORK (TheStreet) -- Shares of Healthways (HWAY) were falling 19.6% to $12.50 on heavy trading volume Friday after the health services company cut its guidance for the full year 2015.

Healthways lowered its 2015 revenue guidance to a range of $770 million to $785 million from its previous range of $800 million to $825 million. Analysts surveyed by Thomson Reuters expect the company to report revenue of $804.48 million for the year.

The company said the lower full year guidance came as a result of lower than expected growth in one significant contract with a commercial health plan, slower implementation and sales cycle for the Ornish Reversal Program, and a slower pace of near-terms business development business development for Blue Zones project opportunities.

About 3 million shares of Healthways were traded by 9:59 a.m. on Friday, above the company's average trading volume of about 462,000 shares a day.

TheStreet Ratings team rates HEALTHWAYS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HEALTHWAYS INC (HWAY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow."